The city’s biggest real estate brokerages released their first-quarter Manhattan market snapshots yesterday. In a nutshell, prices are up--way up in some cases, at least compared to a pretty blah start to 2013. And there still aren't enough nearly apartments for sale--though the longstanding drought appears to have stabilized.
So what does this mean for you?
Buyers: Don't freak out
Prices in Manhattan may be stupid high—the average sales price has surged beyond $1.77 million, marking a record and a 30 percent spike over last year, according to one report—but much of that is because a lot of rich people bought a lot of ultra-expensive real estate.
The median price, which cuts out the stratospheric sales at the top, is a more modest $972,428 up only 13.7 percent since last quarter and 18.5 percent over last year. That means more than half of all sales were under $1 million.
A bigger obstacle than price, perhaps, is the lack of apartments for sale (unless you’re a Russian oligarch shopping for a palatial spread. Er, scratch that.) Competition continues to be fierce, so expect rivals when making an offer, and you may have to settle for your less-than-ideal home. (That said, sellers who need to make a deal fast do exist; here’s more on how to find them.)
Sellers: Don't get cocky
Just because a penthouse at Chelsea's Walker Tower sold for $51 million and other mega deals pushed up the borough's average prices does not mean you should slap an eight-digit pricetag on your walk-up studio.
That said, you probably have the power to design the deal you want.
Not keen on dealing with a buyer who needs a mortgage? “All-cash buyers continue to drive the market," appraiser Jonathan Miller tells Curbed.
Planning to wait to show your home until the weather gets better? You'll have company. “There are a lot of unsatisfied buyers out there hoping this spring will finally be the time they can find their home,” Corcoran Group CEO Pam Liebman told the Times.
The key figures
- Average condo sale price: $2.2 million; 19.9 percent increase
- Average co-op sale price: $1.49 million; 41.5 percent increase
- Number of condo and co-op sales: 3,307, 34.6 percent increase
- Apartments on the market: 4,968; 0.2 percent increase
- Days from listing to contract: 115; 12.9 percent decrease
Residential prices shoot through roof (The Real Deal)